Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which type of account is typically used to record payments for daily operating expenses in financial accounting?

Liability account

Expense account

Asset account

Revenue account

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Verified step by step guidance

Understand the nature of daily operating expenses: These are costs incurred during the normal course of business operations, such as rent, utilities, salaries, and office supplies.

Identify the type of account that matches the nature of these expenses: In financial accounting, expenses are recorded in accounts that track the reduction in equity due to the consumption of resources or services.

Review the definitions of the account types provided: Liability accounts track obligations, Asset accounts track resources owned, Revenue accounts track income earned, and Expense accounts track costs incurred.

Match the concept of daily operating expenses to the correct account type: Since these expenses represent costs incurred to operate the business, they are recorded in an Expense account.

Conclude that the correct account type for recording payments for daily operating expenses is the Expense account, as it aligns with the purpose of tracking costs incurred during operations.